Norwegian Firm close to £600m Petchem Deal

By John Lee.

A Norwegian oil and gas company is reported to be close to finalising a $600-million petrochemical contract in Iran.

According to The Financial Times, the contract will be a 50/50 joint venture between Hemla Vantage and the Kharg Petrochemical Company, a quasi-privately-owned company, to produce and export liquefied national gas and liquefied petroleum gas by 2017.

Hemla director Gerhard Ludvigsen said his company will secure debt financing for the venture.

We are inspired that Iran really wants to shift from a traditional player to a modern player. Nobody would believe that Iran could be the first in the world to produce LNG from a floating production vessel (FLNG) in 2017,” he added.

The joint venture will purchase 200 million standard cubic feet of flared gas from offshore oilfields near Kharg Island over a period of up to 15 years. In its first phase, the site is projected to produce 500 metric tons of LNG and 200 tons of LPG per year. The FLNG barge, produced in China and ready to be shipped to reach Kharg Island by October, will be leased from Belgium’s Exmar.

Earlier this year Helma signed a memorandum of understanding with Iran’s Tamin Petroleum & Petrochemical Investment Company (Tappico).

(Source: The Financial Times)

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